- Oops!Something went wrong.Please try again later.
- Oops!Something went wrong.Please try again later.
Brian Sozzi gives us his take on what to expect from Lyft and Uber earnings as collected data from surveys gives us a better look at consumer trends regarding how often the apps are being used, how long the wait time is for rides, and the pricing a commute.
- As this week rolls on, we are expecting to get results from both Lyft and Uber as we continue to see supply chain pressures certainly hitting the ride hailing space Brian Sozzi. Everybody has their own story about why it's so darn hard to get in Uber or Lyft these days. What are you looking for in these results?
- I'm looking at the cartoon right now, Miles, because I kind sort of look like that guy. But listen, so the ride sharing results are coming out. Lyft his first out after the close today.
And a good pieces of research here from the folks at Jefferies Brent Thill. Noting looking at how people are using, in fact, Uber, Lyft. One survey he did here is, have you ever used ride sharing before?
72%, in fact, say yes. That is up from 50% when Thill ran that same survey in January 2020. Also a big problem of late, if you're riding an Uber or riding a Lyft is wait times. Wait times have been on the rise here.
And you're seeing here the results of their survey describing the current average wait time for ride sharing pickup compared to a few months ago. Worth noting here. Wait times are up. 36% of folks noting longer wait times for Uber or Lyft compared to a few months ago.
And I know for me as someone who uses Uber and Lyft, I have seen wait times go up pretty significantly most notably out in rural locations. Next up. Because they're still seeing a driver shortage here, Uber and Lyft, they're again competing with a lot of other companies here to get workers.
Prices. The average price for an Uber and Lyft ride remain on the rise. 53% of those folks surveyed by Thill over a Jefferies saying they have seen a pickup in prices. No specific percentage mentioned. Just a general pickup in prices.
And then last but not least, despite the pickup in prices and the greater wait times, are you still going to use Uber or Lyft here? This survey suggests people do want to use these services. Almost at the extent as they did at the same level pre-pandemic.
52% said they plan to use Uber Lyft as frequently as they did prior to the pandemic. And in terms of earnings here, Miles, really the setup could be more interesting for Uber or Lyft. If you're out there-- if your short term trading these companies into earnings, according to Jefferies, Uber shares are down 21% over the past three months here. So the expectations have been lowered pretty significantly.
On the other hand, Lyft shares up or up slightly about 1% over the past three months. Investor has been banking on Lyft to finally turn profitable in the third quarter. So when they report, they have to come out here and tell investors again third quarter, we're going to drive profits.
- Yeah. I think it's going to be a great conversation on these earnings calls. Because as you know, management teams love to give you the macro picture. And there is no doubt that the services, that both of these companies have created are huge consumer benefits.
But it is undeniable that when you have a conversation with someone about taking an Uber, taking a Lyft, there are a lot of very unhappy people out there right now. And it-- it feels like out there in the zeitgeist that people want to use these services less.
Now, I know Jeffrey survey doesn't really suggest that, that is going to necessarily come to pass. But I don't know. The anec data to me, seems overwhelming.
- We-- I think as a generation that have grown up using Uber and Lyft, and there are others out there. We have been spoiled that you could just order something on your app and a car, a black car is going to magically appear out in front of your place where you are. And it's going to cost $5 to go 100 blocks. That is not realistic.
Both Uber and Lyft have finally started to manage more like well-run public companies. And with that, comes higher prices.
- Right. I mean, I think, look, we can do the math. You know, you got to eventually raise the prices to try to make money. The question is-- and this look, this is the case there B&B too. Speaking of things that people like to complain about a lot of amazing consumer subsidy it's an amazing product.
Airbnb is incredible, and it has mainstream staying in people's homes and giving you a different look at different places. But it seems like everyone is unhappy now with the service. And you wonder as these companies start to turn those gears on profitability, where do you come down on?
Oh, will we make more money, but our consumers hate our service more. Like was that the case with the iPhone? Do people start hating the iPhone more. I mean, I know someone's going to tell me the answer is. Yes. But right. But like is that the way to go?
- It perhaps it could be. But also the way they're going.
I also want to mention one thing too if you're on these earnings calls Uber Lyft the next two days, watch for any commentary that the executives give on ridership where Delta variants, where the COVID cases have picked up over the past few months. It's going to be a big topic of discussion on these calls.
- Also supply. There's not enough drivers in the platform. And they've never operated in, you know, it was a tight labor market. But nothing like this. So that'll be interesting to look out for.
All right, Brian Sozzi, thanks for that update.